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Here’s One Data Point That Suggests Bitcoin (BTC) Has Bottomed Out

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Here is an interesting one. Take a look at the price of bitcoin as illustrated on the bitcoin price chart (taken from CoinMarketCap) below.

BTC Chart

BTC Chart

The chart shows the action that has been covered across so many of the major news media outlets over the last six weeks or so, with bitcoin sliding from highs at more than $20,000 a piece to current levels in and around $8000.

The 60% decline is one that has come as painful for many longer-term holders but the pain that said holders feel is no doubt insignificant as compares to that felt by anybody that picked up an exposure in or around mid December pricing and have subsequently ridden price down throughout the first half of the first quarter of this year.

Anyway, now take a look at the second chart, this one taken from Google’s Trends platform.

Google Trends Bitcoin

Google Trends Bitcoin

The chart illustrates interest over time in bitcoin, with the metric based on the frequency and volume with which people search for it through Google’s search engine. Official numbers suggest that around 60% of search traffic goes through Google but, in reality, it’s probably considerably higher than that.

Anyway, whatever the numbers, interest over time was at 12 (out of a possible 100) back during the first week of October. By the week of December 17, this had risen to 100 (so, representative of peak interest). That suggests an increase in the wider market attention of around 700% across what is essentially a fraction of bitcoin’s lifespan.

Almost immediately subsequent to this interest peaking, however, search volume fell off a cliff and currently sits at around 49, meaning we have seen a decline of around 100% from December.

So why is any of this important?

Well, it’s reasonable to assume that the uptick in attention and interest during the final quarter of last year is comprised primarily of mainstream attention as opposed to those already familiar with the space increasing the amount of times they type bitcoin and its related terms into Google.

In turn, it’s equally reasonable to assume that the subsequent downturn in interest during the first couple of months of this year is the removal of this same portion of global search volume from the picture.

So, taking these two assumptions into consideration, we can make a further assumption based on price. Specifically, that the portion of the inflowing volume that resulted in the bitcoin price running up to $20,000 and above derived primarily from the increase in mainstream speculation (as opposed to existing holders adding to their positions), at least for the main part.

What does this all mean?

We think that, at current prices, and taking into consideration the recent slight upturn we have seen in the markets, the portion of capital that flowed into bitcoin and pushed price up has now flowed out of the market, meaning balance is restored in the sense that the vast majority of the capital that now supports price derives from long-term holders as opposed to fly-by-night speculators.

In turn, we think that this level represents the level at which it’s perfectly reasonable to assume price should start turning around.

It’s unlikely that we’re going to see a run towards $20,000 short-term since that would mean the volume that entered (and then exited again) entering the market once more. However, within a six-month period, say, the traction that pushed bitcoin towards current levels during the first 6 to 8 months of 2017 could easily push BTC towards $15,000 plus between now and September 2018.

We will be updating our subscribers as soon as we know more. For the latest on BTC, sign up below!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency.


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Bitcoin

Bitcoin Price Dumps Below $41,000 Amid Uncertainty

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Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.

Fundamentals

Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.

Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.

Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.

Last week on Thursday, cryptocurrency experts took notice of…

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Bitcoin

Bitcoin Price is in Consolidation Mode Despite Market Optimism Post-Fed Decision

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Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.

Economic Outlook

Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.

The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.

Additionally, the central bank indicated that three rate…

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Bitcoin Price Blasts $44K in Spectacular Surge as Spot Bitcoin ETF Approval Looms Large

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Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.

Fundamentals

Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.

According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.

Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…

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